[Mr. Now]

HI Sniper,

Thanks for responding here. My point there was after capturing all of the employer-match, he now has various pre-tax saving options, of which contributing more to THAT plan was one of many options to him available. (with caveats)

Your point is important-- "know what you need to do to achieve specific projections and specific goals."

I think the main thing many younger readers of this forum need to understand is the urgency of getting started saving and investing ASAP-- start very young. As young as possible !! Why?

One more doubling period at the end (around age 55-65) means you end up with TWICE as much money as the guy that starts saving and investing (at the same 40-year average rate of return) later, for example one doubling period later.

That difference is huge at the end and can amount to a difference of several millions.

For example 2 guys both 25 both save exactly the same amount per year and get the same average lifetime return of 11%

OK 11% money doubles roughly every 6.54 years ...

Person1 starts at 25 and Person2 starts at age 31.50.

At age 65 Person1 got roughly 6 doubles on his savings while Person 2 gets roughly 5.

Person1 hits age 65 with roughly twice what Person2 gets there with, assuming they both save the same amount every year and average the same return over their pre-retirement lifetimes.

To compensate for starting late, Person2 has to save loads more per year (starting at 31.5 years old) than Person1 (who started at 25)